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Financial Structure and Firm Innovation : Evidence from around the World / Davide S. Mare.

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Mare, Davide S.
Contributor:
de Nicola, Francesca.
Miguel, Faruk.
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Banking.
Entrepreneurship.
Finance.
Finance and Development.
Finance and Financial Sector Development.
Financial Structures.
Firm Innovation.
Non Bank Financial Institutions.
Private Sector Development.
Risk Capital.
Small and Medium Size Enterprises.
Local Subjects:
Banking.
Entrepreneurship.
Finance.
Finance and Development.
Finance and Financial Sector Development.
Financial Structures.
Firm Innovation.
Non Bank Financial Institutions.
Private Sector Development.
Risk Capital.
Small and Medium Size Enterprises.
Physical Description:
1 online resource (27 pages)
Other Title:
Financial Structure and Firm Innovation
Place of Publication:
Washington, D.C. : The World Bank, 2021.
System Details:
data file
Summary:
This paper analyzes the relationship between financial structure and innovation. Analysis of cross-country micro data over 2009-18 shows that a firm's financial sources matter for the choice to innovate and the extent to which a firm innovates. The relationship is stronger for firms relying on non-bank financial intermediaries and for firms in low-technology sectors. Moreover, the use of external sources of finance is associated with improved prospects of innovation, especially in more financially developed countries. These findings suggest that developing the financial sector can bring benefits in terms of innovation.

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